The Construction Firm’s Guide to Smarter WIP Reporting

Construction CFOs and controllers juggle dozens of active projects at once. 

Each job has its own budget, timeline, and risks, and yet most firms don’t see the real financial picture until after month-end, when it’s too late to act.

Work in Progress (WIP) reporting should give a clear, real-time view of how each project performs, but many firms still depend on static spreadsheets and delayed updates. That delay can lead to inaccurate margins, poor cash flow, and missed opportunities to correct problems before they grow.

Recent studies have found that poor WIP visibility contributes to an average 4–6% loss in profitability across mid-sized construction firms, and for companies operating on margins of 1–5%, that’s the difference between profit and loss.

This guide explains what smart WIP reporting looks like, why timing matters, and how real-time ERP systems like Acumatica implemented by ReviveERP give construction firms the visibility they need.

Why Real-Time Financial Visibility Matters

Construction operates on thin margins, and a single delay, billing error, or scope change can erode profits fast. When financial reports arrive only once a month, it’s too late to course-correct.

Real-time WIP reporting changes that. It shows CFOs and project managers:

• Underbilling or overbilling early — before it skews revenue recognition.
• Cost overruns in progress — not weeks after they happen.
• Accurate forecasts for cash flow, backlog, and profit at completion.

When your team sees issues as they develop (not weeks later), they can make faster, smarter decisions.

What a Construction WIP Report Should Include

A construction WIP report tracks each project’s financial position in detail. To be useful, it must bring together real-time data from accounting, operations, and the field to show whether a job is on budget and on schedule.

Contract Value

The total agreed project amount, including all approved change orders. This figure serves as the baseline for recognizing revenue, setting billing schedules, and measuring progress against the contract. Without accurate contract values, it’s easy to overstate earned income or miss adjustments that affect profit.

Costs Incurred to Date

All direct and indirect job costs recorded so far, such as labor, materials, subcontractors, and equipment. These costs tell you how much work has been completed in financial terms. Consistent daily field updates help make sure that CFOs and project managers are working from accurate, up-to-date numbers.

Estimated Cost to Complete

Forecasted remaining expenses required to finish the project. This number depends on current cost trends, productivity rates, and pending change orders. Controllers use it to predict the final profit or loss and to identify potential overruns before they happen.

Percent Complete

Calculated from cost or work progress, this figure measures how far along the project is at a given time. It’s a key input for ASC 606 construction revenue recognition standards, determining how much income can be earned and billed. A miscalculated percentage can distort revenue and profit reporting across the board.

Revenue Billed

Shows how much has been invoiced to date compared to earned revenue. When tracked closely, it helps finance teams confirm that billing aligns with actual progress and prevents large reconciliation adjustments at month-end.

Over/Under-Billing Status

Indicates whether the project is ahead or behind on billing. Overbilling boosts short-term cash flow but can make revenue look stronger than it is. Underbilling slows cash collection and ties up working capital. Monitoring this balance keeps both cash flow and reporting accurate.

Estimated Profit/Loss Remaining

Projects how much profit or loss remains based on the latest job cost and billing data. It helps CFOs and controllers prioritize which jobs need review and which are performing well. Spotting a downward trend early allows the team to adjust budgets, resources, or scope before the final closeout.

Together, these data points form the foundation of construction project forecasting, billing accuracy, and job cost tracking. Real-time visibility across each metric gives decision-makers the clarity they need to protect margins and improve project performance.

Common Problems with Manual or Month-End WIP Reporting

Delayed Updates

When field data isn’t entered until days later, the WIP report no longer reflects reality. CFOs end up managing history instead of progress, reacting to problems that have already grown costly. Delayed updates make it impossible to spot overruns, approve change orders, or adjust forecasts in time to protect margins.

Spreadsheet Errors

Disconnected files, copy-paste mistakes, and version confusion lead to unreliable results. Even small formula errors can cascade across multiple projects, creating false profit signals or missing expenses. Without built-in controls or automation, teams waste hours reconciling numbers that should have matched from the start.

Inconsistent Data

Without a single source of truth, finance and operations teams argue over whose numbers are right. Job costs might look different depending on which report you open or when it was last updated. This confusion slows decision-making, undermines trust in the data, and makes every review meeting a debate instead of a discussion.

No Predictive Visibility

Manual WIP schedules can’t flag risk until the damage is done. A controller might discover overbilling or misallocated costs only after the project closes, distorting financial statements and complicating audits. Without predictive tools or live dashboards, firms stay stuck in a reactive cycle, always catching up instead of staying ahead.

How Real-Time Job Cost and WIP Reporting Helps

Modern ERP systems like Acumatica Construction Edition connect job cost, billing, payroll, and project management in one place. That integration turns daily data into real-time financial visibility.

With automated WIP updates, teams see:

• Continuous insight into job profitability.
• Early warnings when labor or material costs exceed budget.
• Accurate forecasts that adjust automatically as data changes.
• Role-based dashboards for CFOs, controllers, and project managers.

“When clients move from monthly spreadsheets to real-time dashboards, they start catching issues two or three weeks earlier,” says a ReviveERP implementation consultant. “That alone can save thousands on every job.”

How ReviveERP and Acumatica Improve Financial Visibility

ReviveERP focuses exclusively on Acumatica ERP for project-based industries like construction and engineering. That focus means every WIP dashboard, KPI, and report is purpose-built for real-world job management.

Acumatica Construction Edition:

• Automatically updates WIP data from job costs, labor entries, and billing.
• Integrates forecasting, payroll, and subcontractor management.
• Provides drill-down dashboards for cost variance and billing accuracy.
• Shortens month-end close time and improves audit readiness.

By replacing spreadsheets with real-time data, ReviveERP helps firms strengthen financial control, support compliance, and align finance with field operations.

FAQs About WIP Reporting and Visibility

Why is WIP reporting important in construction accounting?

WIP reporting is so important for construction firms because it tracks earned revenue, costs, and billing to show true job profitability. Without it, financial statements can overstate revenue or hide losses.

What is included in a construction WIP report?

A construction WIP report should include contract value, costs to date, estimated completion cost, percent complete, revenue billed, and over/under-billing status.

How often should you update your WIP report?

Updating your WIP report daily or weekly updates deliver the best results as monthly reporting creates delays that hide risks and reduce accuracy. With Acumatica, WIP updates happen automatically as field and cost data are entered.

Financial Visibility Shouldn’t Wait Until Month-End

Construction firms no longer have to rely on static reports or end-of-month reconciliations to know where projects stand. Real-time WIP reporting gives visibility into every dollar earned, spent, or at risk.

With Acumatica’s connected dashboards, firms gain faster decisions, better margins, and stronger confidence in every project.

See how Acumatica gives you real-time WIP visibility. Book a ReviveERP demo to see your financials in real time.